Application of the Harmonized System of tariff classification can be complicated. You can’t just open the Customs Tariff book and Ctrl+F / Command ⌘+F to search (find) for your product. There are legal rules to tariff classification that must be followed. These are called the General Rules for the Interpretation of the Harmonized System (GIR) and must be applied in sequential order. There are also the Customs Tariff Section and Chapter notes, the World Customs Organization (WCO) explanatory notes and various agency rulings, all of which must be taken into account when selecting the correct HS tariff classification code (HS code).
Every 5 years the World Customs Organization (WCO) completes and publishes an updated Harmonized System (HS) Nomenclature. The WCO is an independent intergovernmental body that is responsible for developing international standards to facilitate fair legitimate trade throughout the world. Currently, the WCO has 183 members who represent 98% of world trade. The HS nomenclature is the basis for all member countries’ tariff classification manuals and ensures uniform classification of goods traded internationally.
Most importers know that it can be a nightmare navigating the requirements of Canada Border Services Agency (CBSA) and other Participating Government Agencies (PGAs) when importing goods into Canada. However the red tape gauntlet becomes even more dreadful with systems outages. When most government agencies now require importers to submit release requests electronically, outages can add costs for importers. Although these agencies understand that for every minute the movements of goods are delayed, the importer expends another dollar. What will always ring true is that importing is a privilege, not a right, and outages are part and parcel.
Reason to Believe is one of those customs terms that makes importers' eyes glaze over and think about anything else other than the doom and gloom they are being advised on. With the current state of the world, the last thing anyone wants to talk about is anything that will trigger that familiar shot of anxiety that rockets up your spine. But since Halloween is right around the corner, this scary topic seems entirely fitting.
Global cross border electronic commerce has been growing exponentially over the past few years. The pandemic has accelerated this already growing economy with more people shopping online, resulting in a 40% increase (source). This growth has presented challenges and opportunities for the Canada Border Services Agency (CBSA) in that low value imports shipped by couriers (CLVS) are not held to the same standards as other commercial shipments.
The Canada Border Services Agency (CBSA) announced in their 2021-22 Departmental Plan that “To further streamline commercial processing, the Agency will continue to implement the Electronic Longroom, an email and digital stamping service offered at some CBSA offices that provides an alternative way to submit certain documentation to the CBSA. This initiative automates and expedites the process for commercial clients to declare goods and pay applicable duties and taxes.”
Canada has a number of Trade Incentive Programs to allow Canadian companies to remain competitive in the ever increasing global competitive market and to entice foreign investors to invest in Canada. Trade incentives permit companies to waive, postpone or refund some or all of the duties and taxes that would otherwise be payable. Before reviewing the many programs, let's take a look at Canada’s Foreign Trade Zone Program.
The Canada Border Services Agency (CBSA) Assessment and Revenue Management (CARM) will introduce a new Commercial Accounting Declaration (CAD) in Release 2 which is scheduled for Spring 2022. The CAD will enhance and replace the current B3 (Customs Coding) and B2 (Request for Adjustment) processes.
Twice a year, Canada Border Services Agency (CBSA) releases its Trade Compliance Verification Priorities list. CBSA manages trade compliance with the tariff classification, customs valuation, and origin programs.
Canada Border Services Agency (CBSA) Assessment and Revenue Management (CARM) is a large multi-year project which started in 2016 with the Accounts Receivable Ledger (ARL).With release 2 of CARM, changes will be made to ARL. Keep reading to learn more.